Sweden's IF Metall ends Tesla strike after carmaker buys out union members

STOCKHOLM, Aug 13 (Reuters) - Swedish trade union IF Metall said on Thursday it was calling off its three-year-long industrial action against Tesla after the carmaker bought out all the union's striking members at the company. 

"This means that the conflict no longer has any effect," the union said in a statement.

The dispute started in October 2023 when Tesla mechanics went on strike as the union demanded collective agreements with Tesla, making it a flashpoint for tensions between CEO Elon Musk's anti-union stance and Sweden's collective bargaining model.

Tesla does not have manufacturing plants in Sweden, but its electric cars are serviced by IF Metall union workers.

"We can conclude that Tesla is so strongly opposed to collective agreements that they would rather buy out employees who are members of the union than give them safe conditions," IF Metall said.

"This is unprecedented in the Swedish labour market," it said, adding that it still aims for collective agreements to apply across the country.

Tesla did not immediately respond to a request for comment. 

The U.S. group has continued to operate in Sweden throughout the labour conflict, selling new vehicles and carrying out repairs.

The Nordic region is a key market for Tesla, which has a policy of not agreeing to collective bargaining and has said its staff have as good or better terms than those IF Metall is demanding.

IF Metall is suspending its action, which has had support from several other Nordic trade unions, as of August 19, ending Sweden's longest strike.

(Reporting by Anna Ringstrom, editing by Louise Rasmussen and Elaine Hardcastle)